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Producer Company (F)

Producer Companies

A producer company can be defined as a legally recognized body of farmers/ agriculturists with the aim to improve the standard of their livelihood, and ensure a good status of their available support, incomes and profitability. Under Companies Act 1956, a Producer Company can be formed by 10 individuals (or more) or 2 institutions (or more) or by a combination of both (10 individuals and 2 institutions) having their business objective as one of the following:

  • Procurement
  • Production
  • Harvesting
  • Grading
  • Pooling
  • Handling
  • Marketing
  • Selling, or
  • Export

of the primary produce of the Members or import of goods or services for their benefit.

  1. The members of the producer company initially will receive the value for the produce pooled and supplied as determined by the directors. This amount will be given out later in the form of cash/ kind/ equity shares.
  2. The members of the producer company will be entitled to get bonus shares in the same proportion to the shares held by them.
  3. The surplus may be given as patronage bonus* to the members of the producer company.

Difficulty of Formation: Promotion of a company is not an easy task. A number of stages are involved in company promotion.

Separation of Ownership and Management: The ownership and management of public company is in different hands.

Factory System: The company form of entity leads to large-scale production.

Speculation in Shares: The joint stock companies facilitate speculation in the shares at stock exchanges.

Any of the following combination of producers can incorporate a producer company:

  • Ten or more producers (individuals); or
  • Two or more producer institutions; or
  • Combination of the above two (10+2).

On registration under Section 581 C (1), the Producer Company shall become a body corporate as if it is a private limited company to which the provisions contained in this Part apply.

It cannot become or deemed to become a public limited company.

  • Share capital of a Producer Company shall consist of equity shares only.
  • Members’ equity cannot be publicly traded but only transferred
  • Voting
  • Only of individuals, then voting rights shall be based on a single vote for every member.
  • Only of producer institutions, then voting rights on the basis of their participation.
  • Combination of both individuals and producer institutions then voting rights shall be based on a single vote for every member.



All about Producer Companies

Producer Companies

The main objective of the producer company is to facilitate the co-operative business as companies and to make it possible to convert existing co-operative business into companies.

The objects given under section 581B are as follows:

  • Production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary production of the Members or import of goods or services for their benefit, provided that the Producer Company may carry on any of the activities specified in this clause either by itself or through other institution.
  • Processing including preserving, drying, distilling, brewing, vinting, canning, and packaging of the produce of its Members
  • Manufacture, sale or supply of machinery, equipment or consumables mainly to its Members.
  • Providing education on the mutual assistance principles, to its Members and others.
  • Rendering technical services, consultancy services, training, research and development and all other activities for the promotion of the interests of its Members.
  • Generation, transmission, and distribution of power, revitalization of land and water resources, their use, conservation and communication relatable to primary produce.


INR 39,999/-

One Time Fee

  • Producer company Incorporation
  • PAN & TAN
  • ESI & PF
  • GST Registration
  • MSME Registration
  • Bank A/c.

Service Provide Within 7 Days


INR 49,999/-

One Time Fee

  • Producer Company Incroporation
  • PAN& TAN
  • ESI & PF
  • GST Registration
  • Shop & Establishment Registration
  • MSME Registration
  • Trade Mark Registration
  • Logo Design
  • Opening Bank A/c.

Service Provide Within 15 Days


INR 29,999/-

Yearly Fee

  • Annual Compliances
  • Yearly GST Compliances
  • Income Tax Return

Services Provided Before the Due Date

Frequently Asked Questions

producer company started with the objective of harvesting ,procurement ,grading ,pooling ,handling ,marketing, selling and export of primary things and import important things for its members

minimum 5 directors are required for start a producer company .

To start a producer company minimum 5 lakh capital must be required .

There is a limited liability in producer company , Producer company having a better Management.

A producer company can be formed with 10 or more individual as a producer or with two or more producer institutions or with the combination of both the conditions .

4 board meetings is mandatory to be conducted in a year and a maximum  gap between a meeting is 3 months .